Share Out and Re-Focus

I hope you have enjoyed your time off and gotten plenty of rest.  Now that the snow has cleared, it's time to get back to work, and I've devised just the right activity to help us get back in the swing of things.

Why is Pick-it Sweets & Treats such a great business?  Why was our written and oral business plan presentation so strong?  I believe it is due to the fact that everyone contributed his/her own ideas to the organization, and the whole is clearly greater than the sum of its parts. 

With that in mind, I decided that we should take some of our individual business plans and bounce our ideas off one another to help make them even better than what we could do on our own.  After this, we will re-focus on current economic conditions and expenses.  I know we touched upon these the last time we were in class, but truly understanding economic conditions and expenses is essential to being a good business person.  Here's a weekly breakdown of our tasks:

Monday:

Clear Target: We can analyze and critique a business plan.

On Monday, we will have an activity centered around our progress with our individual business plan.  Three or four students will share out their ideas, notes, etc. on the business plan to get some feedback on what the rest of the class thinks.  This activity will work just like our brainstorm in the beginning of the year when we bounced ideas off one another about Pick-it Sweets & Treats.

Basically, those who present will share their notes in the following manner:

1. Their business idea - what is the need you are filling?

2. Their vision - What will the business look like and be like? 

3. Their target market - how will your business appeal to your market?

4. The rest of their notes (the working document you have kept on MS Word, Google docs, etc.) - what's your logo like? What do you do to differentiate yourself?

I have already emailed you a Google Form for these presentations that you will complete during each presentation.  The critique forms are actually secondary, though.  The purpose of the activity is for the class to verbally critique each business to help improve the plan - just as we did during our initial brainstorm for our VE firm.  You can think like an investor or think like a customer or just think like a business person who wants to help local organizations thrive.

That said, I need four of you to volunteer to present your business if you don't wish for me to select myself.  I have a few in mind that I believe will benefit from this activity, but I would like to have you take ownership of this activity.

Tuesday and Wednesday: Current Economic Conditions
Clear Target: We can analyze economic conditions in a capitalist society

While you’ve already completed an industry analysis, on Tuesday and Wednesday, you will take a look at the economy from a “big picture” perspective.  Here’s a breakdown taken straight from our rubric:

·       Current economic conditions: a “snapshot” of the economic environment that may include information such as employment levels, interest rates, rate of inflation/deflation, rate of change of GDP, balance of trade, exchange rates, and/or any other information you think is appropriate.

Now, this “snapshot” is essential to determine what effects the economy will have on your business.  It’s one thing to report to me that consumer discretionary income is dwindling as a result of inflation.  It’s a completely different (and more thorough) situation when you explain that because of dwindling discretionary income, your profits will be negatively affected, since fewer consumers will be capable of actually paying for your products/services. 

Thursday/Friday: Expenses (Fixed/Variable) and Blog
Clear Target: We can create a budget for a startup business

The time has come to begin looking for real numbers for our business.  How much money does it actually cost to run your business?  Many of you have already done at least some research about renting a facility, paying employees, advertising expenses, etc.  For Thursday, the plan is to first list as many costs as you can for your business.  Consider these questions:

o   Will you have a facility?

o   How much is the rent for the amount of square footage you need?

o   Will you hire employees?

o   Will you advertise?

o   Approximately how much does the utility bill cost for a facility you plan to run?

o   Do you sell merchandise?  What is the cost to make or procure the merchandise?

o   What other consumable assets will you use on a monthly basis? (landscaping companies use fuel on a regular basis)

The list can go on and on.  My suggestion is that you find as many fixed and variable expenses as possible for your plan.  A simple web search can greatly help you.

Once you’ve sufficiently completed these tasks (or if we only have about 20 minutes left in class Friday), it’s time to blog about your progress.  Feel free to tell me:

What have you learned about being prepared for anything? 

How did you react to having to deal with the possibility that your original assumptions may have been wrong?

What did you learn about our economy? Has your opinion changed about anything?

How will the economy impact your business?

Were you aware of all the expenses your business would have to pay?  Which expenses stood out during your research?

That’s it for this week.  See you in class!

Dual Focus! Same as Last Year

This week we will have a dual focus for our business plan.  Our first area of concentration will be on the discussion of business risks.  Here we will outline different ways to handle our business if the assumptions in our SWOT analysis are incorrect.  We will then build on this by researching the current economic environment.  By analyzing the economic conditions, we will be more justified in our beliefs about trends that may occur in our industry, and will be better equipped to manage our business.  Our second area of concentration will be on finding as much data about the expenses of our business as we can.  In order to be able to complete a break-even analysis, and later determine how much profit we plan to earn in the future, we must first know the true cost of running the business. 

Here’s how we’ll eat the elephant this week:

Monday: Discussion of Business Risks

Have you ever heard someone break down the word assume?  If not, let’s just consider you to be one of the lucky few.  In any case, the assumptions made in our SWOT analysis are likely to be backed by research about our industry.  Unfortunately, even with hundreds of hours of research, some assumptions end up being incorrect.  Today’s classwork deals with handling business risks and incorrect assumptions.  From the rubric:

·       Discussion of business risks - 5 points

o   Identify the risks that will occur if assumptions you have made are incorrect.

o   Provide a strategy for dealing with the risks identified.

Essentially, we’re making sure we have all bases covered.  Today’s work should be somewhat challenging, but fun.  Your final draft for discussion of business risks should be about 100-150 words.

Tuesday and Wednesday: Current Economic Conditions

While you’ve already completed an industry analysis, on Tuesday and Wednesday, you will take a look at the economy from a “big picture” perspective.  Here’s a breakdown taken straight from our rubric:

·       Current economic conditions: a “snapshot” of the economic environment that may include information such as employment levels, interest rates, rate of inflation/deflation, rate of change of GDP, balance of trade, exchange rates, and/or any other information you think is appropriate.

Now, this “snapshot” is essential to determine what effects the economy will have on your business.  It’s one thing to report to me that consumer discretionary income is dwindling as a result of inflation.  It’s a completely different (and more thorough) situation when you explain that because of dwindling discretionary income, your profits will be negatively affected, since fewer consumers will be capable of actually paying for your products/services. 

Thursday/Friday: Expenses (Fixed/Variable) and Blog

The time has come to begin looking for real numbers for our business.  How much money does it actually cost to run your business?  Many of you have already done at least some research about renting a facility, paying employees, advertising expenses, etc.  For Thursday, the plan is to first list as many costs as you can for your business.  Consider these questions:

o   Will you have a facility?

o   How much is the rent for the amount of square footage you need?

o   Will you hire employees?

o   Will you advertise?

o   Approximately how much does the utility bill cost for a facility you plan to run?

o   Do you sell merchandise?  What is the cost to make or procure the merchandise?

o   What other consumable assets will you use on a monthly basis? (landscaping companies use fuel on a regular basis)

The list can go on and on.  My suggestion is that you find as many fixed and variable expenses as possible for your plan.  A simple web search can greatly help you.

Once you’ve sufficiently completed these tasks (or if we only have about 20 minutes left in class Friday), it’s time to blog about your progress.  Feel free to tell me:

What have you learned about being prepared for anything? 

How did you react to having to deal with the possibility that your original assumptions may have been wrong?

What did you learn about our economy? Has your opinion changed about anything?

How will the economy impact your business?

Were you aware of all the expenses your business would have to pay?  Which expenses stood out during your research?

That’s it for this week.  See you in class!

SWOT Analysis & Some Cover Letter Info

This week, we will focus on the long-term potential of our business, as well as learn a little bit about cover letters while we're in the LGI room (Tuesday, Wednesday, Thursday).  Our goal is to analyze the internal and external environment as thoroughly as possible.  This will be accomplished through completing a SWOT analysis.  Here’s a breakdown of the weekly tasks.

Monday: Internal Strengths and Weaknesses

Here is a great link to an article that summarizes how to compose a SWOT analysis.  The first two portions, strengths and weaknesses, deal with your internal operations.  In the article, there are bulleted questions that you can answer to complete your analysis for each section, but you may also choose to identify other highlights that are industry-specific if you wish.  For example, do you have any technology at your disposal that separates you?  Are your employees trained in a certain way that helps your business stand out?

We will share out some of our findings in the last 7 minutes of class, so please work diligently and be prepared.  Also, don’t hesitate to use some great points from your classmates if you can add them to your plan.  The purpose of this exercise is to share best practices (buzzword: collaborate).

Tuesday: External Opportunities and Threats

Again, reference this article for some questions that you may use to complete your analysis.  Think about it… your established competitors may be resting upon their laurels, and may be missing out on opportunities in the marketplace that you can use to your advantage.  Conversely, these established competitors do have name recognition and good reputations on their side.  Will this pose a threat to your business penetrating the market?  How will you address this?

We will again make use of the last 7 minutes of class to share out our findings.  I urge you to think hard when it comes to what “best practices” you can use for your own plan.  This is a great way to expand your thinking and be productive.

Wednesday: SWOT Analysis Final Draft

OK, today we are going to put it all together.  Take your notes/draft for your SWOT analysis and make it pretty!  Here are a few ideas for making your final draft

Now, you can use tables in Microsoft Word or use Google to search for some SWOT analysis templates if you wish.  I found a really good one that’s in my Public_Faculty folder saved as Business Plan – SWOT Analysis Template.ppt as a PowerPoint file.  I happen to LOVE slide 2 of the presentation, and would use that for my SWOT analysis. 

Your assignment today is to find an aesthetically pleasing (and EASY TO READ) template and enter your findings as a final draft. This will be a fun and creative day!  I know it.

Thursday: Cover Letter Lesson

Today, you will take a break from the SWOT analysis and focus on preparation for our Mock Interview Competition with a lesson about Cover Letters.  Below is a screenshot of what Coach Bruce has planned for you in the LGI Room:

The activities are well planned and will be a huge help for you.  If you want additional help with writing cover letters, consult with the following links:

1. How to write a cover letter & What is a cover letter?

2. What to include in a cover letter

3. What is "block form" all about?

Friday: Catch-up Day and Blog

This week was pretty intense, I’ll admit.  You used your analytical skills to assess your business, your competitors, your industry, and your classmates’ hard work.  You used creativity in formatting an aesthetically pleasing SWOT analysis and presenting it to the group.  Perhaps there are still some loose ends to tie up. 

Let’s use today’s class to catch up on the entire project and write a blog entry about where you stand.  Feel free to address these questions in your blog entry:

1.     Are you caught up with every section of the plan?  If so, how have you accomplished this?  If not, what has kept you from staying on track?  Be honest and create a plan to catch up.

2.     Now that you’ve completed a majority of the plan, how well will your business perform in the marketplace?

3.     How do you think an investor will react to your plan?  Do you think you can get the startup capital needed for your business?  Why or why not?

Feel free to write a short intro to your blog entry and then list the questions in your post, addressing them one at a time.  I look forward to reading your reflections about your progress.

See you next week!